The rise of the G20 marks the eclipse of the EU

The displacement of the G7 and G8 by the G20 as the primary unit of international economic co-ordination tells us something about the dwindling importance of Europe. EU member states constituted a majority of the G7; but they are only a fifth of the G20. At the beginning of this decade, the EU accounted for 27 per cent of the world's economic activity; by 2018, according to the European Commission itself, that figure will have dropped to 15 per cent.

I'm not saying that the G20 is intrinsically benign. While I am all in favour of collaboration between democracies, and of summit meetings when there is a specific issue to resolve, the tendency towards global economic government is deleterious both to democracy and free competition. My point, rather, is that the EU's economic strength is failing. The decision by successive British governments to pursue European integration has narrowed our horizons. We are attached by our history and our geography to every continent; yet, for nearly four decades, we have been forsaking older frienships in order to be properly communautaire.

When Britain joined the EEC in 1973, it was still possible – just – to believe that we were thereby ensuring our prosperity. As things turned out, our timing was spectacularly poor: the oil crisis of 1974 marked the end of the period of unprecedented growth that Western Europe had enjoyed since the end of the Second World. Where our fathers believed they were linking themselves to an economic giant, it is now beginning to look as though we are handcuffed to a corpse. How much longer until we strike the chains?